Contents - AL-Tax

170 12 Decentralized Ownership of Intellectual PropertyTable 12.1 (continued)−68 −68 −68 −68−68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68 −68 −68 −68 −68 −68−68 −68 −68 −68 −68 −68 −68 −68 −68 −68 −68 −68−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151 −151−392 −392 −392 −392 −392 −392 −392 −392 −392 −392 −392−392 −392 −392 −392 −392 −392 −392 −392 −392 −392−392 −392 −392 −392 −392 −392 −392 −392 −392−392 −392 −392 −392 −392 −392 −392 −392−392 −392 −392 −392 −392 −392 −392−392 −392 −392 −392 −392 −392−392 −392 −392 −392 −392−392 −392 −392 −392−392 −392 −392−392−392−3922628 2952 3276 3600 3924 4248 4572 4896 5220 5544 5868 6192Year 3 Amortization: 52,920 Eurosfunctions. 4 These additional adjustments yield a revised (and reduced) estimate ofFS’ residual profits. Under this scenario, USP’s share of residual profits remains thesame 23.0%–27.0% (albeit applied to a smaller residual profit base). Moreover, it isentitled to services fees equal to the cost of site operations services rendered to FS,plus the aforementioned 10.0% markup.In the third phase of our analysis, we incorporate the fact that FS does not benefitfrom USP’s ongoing investments in scalability. The U.S. site is approximately threetimes the size of the single largest international site. As a result, international sites4 FS’ adjusted operating profits would ordinarily be net of the costs of performing its routinefunctions. However, because we initially assumed that FS did not perform routine functions, weeliminated the associated deductions. As such, in relaxing this assumption, we also reduce FS’adjusted operating profits by these costs.